Centre hikes Rabi MSP for 2025-26

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an increase in the MSP for six Rabi crops for the 2025-26 marketing season, with hikes ranging from ₹130 to ₹300 per quintal.

This decision comes ahead of elections in Maharashtra, Jharkhand, and Delhi. The Rabi marketing season begins in April 2025. The government's price policy aims to ensure fair prices for farmers while keeping supplies affordable for consumers. The MSP hike guarantees margins over production costs of 105% for wheat, 98% for rapeseed and mustard, and 50% to 89% for lentil, gram, barley, and safflower.

The increase in MSP ranges from 2.41% to 7.03% across these crops, aiming to support farmers' income and encourage Rabi crop cultivation.

For the Rabi marketing season 2024-25, the government has fixed the MSP for the crops - barley at ₹1,980 per quintal, gram at ₹5,650, lentil (masur) at ₹6,700, rapeseed and mustard at ₹5,950, and safflower at ₹5,940. The highest increase can be seen in rapeseed and mustard MSP, up by ₹300 per quintal. Barley's MSP rose by ₹130, or 7.03%, with top-producing states including Uttar Pradesh, Rajasthan, and Madhya Pradesh. Gram, the country’s largest pulse crop, saw an increase of ₹210 per quintal. Maharashtra leads gram production, followed by Madhya Pradesh and Rajasthan. Lentil's MSP increased by ₹275 per quintal, with key producers being Uttar Pradesh and Madhya Pradesh. Safflower’s MSP rose by ₹140, with Karnataka and Maharashtra as top producers.

The MSP hike for wheat is notable, given its rank as the second-largest crop by area after paddy. In 2023-24, wheat was grown on 318.33 lakh hectares, with an estimated production of 113.92 million tonnes. Uttar Pradesh leads in wheat production, followed by Madhya Pradesh, Punjab, and Haryana. In the current rabi season 2024-25, the government procured 26.6 million tonnes of wheat, down from the 43.34 million tonnes peak in 2021-22, benefiting 22 lakh farmers. The Centre needs about 1.8 million tonnes monthly for the National Food Security Act.

The Minimum Support Price (MSP) for 22 crops, including 14 Kharif, 6 Rabi, and 2 commercial crops (jute and copra), is set based on recommendations from the Commission for Agricultural Costs & Prices (CACP). Key factors like production costs, demand-supply, and trade impacts are considered, with MSP set at least 50% above production costs. The Commission for Agricultural Costs & Prices (CACP) recommends MSP for 22 crops before the sowing period each year. There are 14 Kharif crops and seven Rabi crops covered under MSP.